Core member of the UniCredit group. Center of competence for capital-markets business within the UniCredit Group. A good banking franchise, mainly in Bavaria and some parts of Northern Germany. Strong capital position. Elevated market and credit risks from the corporate and investment banking unit. Reliance on wholesale funding, despite prudent liquidity management. High earnings volatility, owing to the capital-markets business and modest performance of the domestic operations. The ratings on Germany-based UniCredit Bank AG (UCAG; formerly Bayerische Hypo- und Vereinsbank AG) are based on what Standard&Poor's Ratings Services considers to be UCAG's core status within the UniCredit group (parent company UniCredit SpA rated A/Stable/A-1). UCAG's core status, which raises its stand-alone creditworthiness by two notches, reflects the bank's
